IRS Announces Pension Plan Limits for 2017

Team Ceridian

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Background and Details of the Change:

The Internal Revenue Service (IRS) released its defined contribution plan limits for 2017, along with certain other pension and retirement plan limits. Although some compensation limits increased for 2017, employee contribution limits remain unchanged.

Here is a summary of the limits that have changed:

The limit on the annual benefit under a defined benefit plan under Section 415(b)(1)(A) is increased from $210,000 to $215,000

The annual limit on the amount of compensation that can be "taken into account" under section 401(a)(17) pertaining to 401(k) plans increases to $270,000 (from $265,000).